North America Paving the Way for Industrial Energy Efficiency Programs

Washington, D.C.—The United States and Canada are leading the world with their innovative programs that deliver industrial energy efficiency services to customers, says a new report by the Institute for Industrial Productivity (IIP) and the American Council for an Energy-Efficient Economy (ACEEE).

The report, Energy Efficiency Resource Acquisition Program Models in North America, looks at eight industrial energy efficiency programs across the United States and Canada. The programs were chosen because of their success at securing energy efficiency as a resource to meet current and future regional energy needs. Each program has a different model for acquiring energy savings, but all manage a series of initiatives that influence industrial customers to implement best practices and invest in efficient technologies.

"In the U.S. and Canada, the delivery of energy efficiency as a resource to meet existing and future demand is now being relied upon with the same certainty as electricity or gas from new generation,” said Robert Taylor, the lead author of the report and Principal at Energy Pathways LLC. “These initiatives, called energy efficiency acquisition programs, have become a fixture of North American electricity and natural gas markets. They have been single-handedly responsible for postponing or eliminating the need for many expensive investments in new generation and transmission systems, and have become the model for other international programs to follow.”

”The research shows the importance of tailoring the programs to the needs of different regions or industries,” said Dr. R. Neal Elliott, Associate Director for Research at ACEEE. “What is novel about these programs is the variety of institutional structures that have been created. There isn’t a single model that will be ideal for all situations. But the report describes the necessary ingredients of a successful program that will bring real savings through energy efficiency.”

“This report will assist both government and industry across the world when they develop their own energy acquisition programs,” said Julia Reinaud, co-author and Policy and Program Director for IIP. “The report demonstrates how the North American utility structure works and how it can be adapted and tailored to other countries’ specificities. The benefits of this model are significant and could contribute towards huge energy savings by industry. Energy efficiency can be provided at a fraction of the cost of traditional energy resources.”

The report was commissioned by IIP as part of their global efforts to promote program best practices. As part of the work, IIP will soon launch a new database on global energy efficiency programs at www.iipnetwork.org.

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Overview / Mission

The American Council for an Energy-Efficient Economy (ACEEE), a nonprofit, 501(c)(3) organization, acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors. We believe that the United States can harness the full potential of energy efficiency to achieve greater economic prosperity, energy security, and environmental protection for all its people.